MJ Industries

Price elasticity of demand measures how sensitive consumers are to price changes for a particular product. By understanding this concept, businesses can make more informed decisions about pricing strategies. The best way to accurately calculate elasticity is through the midpoint method . Here’s everything you need to know about price elasticity of demand, how to calculate it, and its implications for your business. What is Price Elasticity of Demand? Price elasticity of demand (PED) indicates how much the quantity demanded of a product changes in response to a price change. In simpler terms, it shows how flexible or "elastic" demand is when prices fluctuate. Products can either be elastic or inelastic based on their sensitivity to price changes. Elastic demand : When the PED is greater than 1, demand is highly responsive to price changes. Luxury items, non-essential goods, and products with close substitutes tend to have elastic demand. Inelastic demand : When the PED is be...

Investing in oneself, particularly in developing subject matter expertise, is a fundamental principle that many successful investors emphasize. Whether it’s honing skills in healthcare, education, banking, or any other field studied in academia or experienced in the workplace, knowledge is the most valuable asset one can possess. Legendary investor Warren Buffett once said, “Risk comes from not knowing what you’re doing.” This underscores the importance of understanding the businesses one invests in. Rather than fixating on stock prices, Buffett advises focusing on the fundamentals of a company: its operations, finances, and management. Investing in businesses that one understands and believes in can lead to long-term success. For instance, if you have expertise in international trade, companies like Amazon could be a potential investment avenue due to their extensive involvement in global commerce. Similarly, identifying companies with durable competitive advantages, known as franchis...